BASIX Sub-k, a startup that works with a vision to provide a technology-enabled transactional platform to the unbanked population, has raked in Rs 75 crore in a Series C funding round from Denmark’s Maj Invest.
Hyderabad-based Sub-k would utilize the fresh proceeds for strengthening its IT platform and product innovation so that the company is counted among the preferred fintech as well as the distribution partner for banks and financial institutions.
Previously, Sub-k had raised Rs 35 crore in a venture round led by Accion and Nordic Microfinance Initiative in March 2018.
Founded in 2010, Sub-k is a service company that offers affordable, accessible and scalable digital payment solutions to the BoP segment in rural and urban areas.
Sub-k offers services including microcredit, insurance, pensions, farm loans, personal loans, vehicle loans to the business of micro-entrepreneurs. It also leverages facilities such as Government payments to citizens, Aadhaar card, PAN card services to its customers.
The Sasidhar Thumuluri led company operates, manages, and controls inclusive transactions on an end-to-end basis through recruiting, training and equipping local entrepreneurs as Business Correspondent (BC) agents. The agents serve as human ATMs at the last mile of connectivity between the Bank and the end consumer, through mobile/kiosk-based technology.
According to the company’s official website, it has more than 4000 BC outlets presently.
Furthermore, Sub-k claims to provide these services to more than three million under-banked households and micro-enterprises across India on behalf of multiple banks as a business correspondent.
With having around $2 million estimated revenue annually, Sub-k counts Janalakshmi, Spandana Sphoorty, Financial Limited, and Utkarsh Micro Finance among its major competitors.
Of late, the company is operational in 26 states with more than 300 districts of India and manages a loan portfolio of Rs 800 crore for various banks.
Sub-k currently works in partnership with various banks including State Bank of India, RBL Bank, Axis Bank, and Kotak Mahindra, and others.
This development was first reported by ET.